Interest Rate Cuts

Many in the real estate industry have commended the Reserve Bank of Australia’s move to cut rates to a historic low.

The Real Estate Institute of Australia (REIA) applauded the Reserve Bank of Australia’s (RBA) decision to introduce a 25-basis point cut to the official interest rate, bringing the figure to the lowest level since the late 1950s.

The official interest rate is now 2.25 per cent, after one of the longest periods of interest rate stability.

REIA president Neville Sanders said the RBA board had made a considered and accurate assessment of the property market, taking into account economic headwinds Australia and the international community are experiencing.

“The significance of the easing monetary policy is that housing affordability in Australia will improve further. However, we need today’s cut to be passed on fully by lenders,” he said.